The UK government plans to issue the world's first sovereign green bond for retail investors as part of its efforts to create a net zero-carbon economy by 2050.

Savings bonds will fund projects in areas such as renewable energy and clean transport and will be sold this year, the Treasury said.

Chancellor Sunak also promised to launch so-called green gilts for institutional investors (note: gilts were originally public bonds issued by the UK government. Government bonds issued by the British government were formerly gold-edged, hence their name), which will be announced in a budget statement on Wednesday as part of his borrowing plan for fiscal year 2020.

Sunak will also use his budget statement to announce three plans that will be funded from the government's £1 billion ($1.4 billion) net zero innovation portfolio, the Treasury said on Saturday night.

British Prime Minister Johnson will host world leaders at the United Nations climate conference in November in an attempt to agree on action to stabilize the earth's climate.

Last year, Johnson made a ten-point plan for the Green Industrial Revolution. But the opposition Labour Party says it is not ambitious enough to achieve the goal of net zero emissions by 2050.